Buying Tips

Buying Tips

Get a Pre-Approved Mortgage
Is your Mortgage Both Portable and Assumable
Down Payment
Market Conditions
Buying a Condo - Advantages & Disadvantages
Realtor® Representation for Buyers

Get a Pre-Approved Mortgage

You should get a pre-approval for a mortgage before you go looking for a home. Your lending institution can provide you with a written pre-approval at no cost or obligation and this can be done quite easily over the phone. It entails a completed credit application and a certificate which guarantees you a mortgage with a maximum price range so that you can find your dream home.

Is your Mortgage Both Portable and Assumable?

A portable mortgage is one that you can carry with you when you buy your next home and avoid paying any discharge penalties.

An assumable mortgage is one that the Buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table, making it much easier for a Buyer to buy your home and again saves you any discharge penalties.

Down Payment

A mortgage covers the difference between the purchase price and your down payment. The larger the down payment, the less you have to borrow, the smaller your monthly mortgage payment and the lower your cost of interest over the term of the mortgage. It probably makes sense to put down as much of your own money as possible.

Market Conditions

The Real Estate market is always changing. I can provide you with Real Estate market conditions and explain their impact.

Market Analysis

Buyer's Market

Meaning

  • Supply of homes on market exceeds the demand.

Characteristics

  • High inventory of homes.
  • More competition from other Sellers.
  • Homes stay on the market longer.
  • Price tends to drop.

Implications

  • More time to look for a home.
  • More negotiating leverage.

Seller's Market

Meaning

  • More Buyers wanting homes than the number of homes on the market.

Characteristics

  • Smaller inventory of homes.
  • More Buyers.
  • Prices increase.
  • Homes sell quickly.

Implications

  • May pay more for their home.
  • Have to make decisions quickly.
  • Conditional offers may be rejected.

Balanced Market

Meaning

  • Number of homes on market usually equals the number of Buyers.

Characteristics

  • Demand equals supply.
  • Prices are usually stable.
  • Sellers accept reasonable offers.
  • Homes usually sell within a reasonable time.

Implications

  • More inventory to choose from.
  • Take more time on deciding.

Buying a Condo - Advantages and Disadvantagest

Advantages

The many reasons for buying a condo instead of a house include:

  • Usually less expensive than buying a similar size family house.
  • Exterior maintenance is the responsibility of the condominium corporation.
  • The security of leaving your condo for an extended time without worry. It's called "lock and leave."
  • Pride of ownership from being an owner rather than a renter.
  • Potential resale profit as the condo appreciates in market value, especially in today's market because of the baby boomers wanting to downsize.
  • People tend to feel safer living in a condominium because of security in the building and close neighbours.

Disadvantages

  • Being subject to the rules of a condominium corporation.
  • Unexpected increases in monthly fees & special assessments for maintenance costs.
  • Policies and rules you don't like such as "no pets or no rentals."
  • The possibility of poor quality maintenance & management, which affects resale value.
  • Poor sound proofing.
  • Lack of freedom to do as you wish.
  • Neighbours you don't like, or who don't like you.

Realtor® Representation for Buyerst

Accredited Buyer Representation.

Do you have a Real Estate Representative working in YOUR best interest?

If you want to have your own Real Estate Professional working for you and in your best interest, it is important that you enter into a Buyer Representation contract with the Realtor®. There is usually no cost to you to have your Realtor® under contract; the Seller pays the commission unless otherwise arranged by you. Your Realtor® is now under contract to work only for you and in your best interest.

In Real Estate; there are different possible forms of representation relationships, these are;

Buyer Representation & Customer Service

Buyer Representation - As a "Buyer's Realtor®" Patti can:

  • Represent your best interests.
  • Keep your personal information confidential.
  • Provide advice on negotiation strategy.
  • Provide competent service, full disclosure of all pertinent facts about the property, market information, honest answers to all your questions & preparation of offers and other legal documents.
  • Help to identify a Buyer's wants and needs.
  • Show properties.
  • A written contract establishes Buyer Representation.
  • It also explains services the Realtor® will provide, spells out who will pay and specifies what obligations a Buyer may have. Typically, Buyers will be obliged to work exclusively with that Realtor® for a period of time.

Customer Representation

If you are a Customer, we cannot:

  • Suggest or recommend a price.
  • Disclose any confidential information about the client unless authorized to do so.
  • Inform you of the client's "bottom line".
  • Negotiate on your behalf.

For questions or more information on any of these topics, please click here  to contact us.